The company announces 22H1 results. The income of 22H1 is 2.85 billion yuan, + 60.9% compared with the same period last year, and the net profit of returning home is + 1.1% to 202 million yuan compared with the same period last year. 22H1 medical business revenue is + 6.4% to 4.017 billion yuan compared with the same period last year. The company's holding hospitals have all been included in the table, 22H1 and WISCO Hospital Group.
The income of medical business has increased steadily. The income of outpatient service in the first half of 2022 was 2 billion yuan, an increase of 11.9 percent over the same period of 2021. The outpatient service volume was driven by nucleic acid testing to increase significantly, but at the same time significantly reduced the per capita cost level. Excluding the nucleic acid test driver, despite the impact of the epidemic, regular outpatient income still increased, an increase of 11.4% over the first half of 2021. The income of hospitalization business in the first half of 2022 was 1.97 billion yuan, an increase of 2.2% over the same period last year in the first half of 2021. Although the number of hospitalization was affected by the epidemic, it still increased by 11.4%, but affected by the health insurance payment reform in some regions, the average cost per time decreased by 8.2%.
The overall hospital profit contribution rate of 22H1 is 9.1%, which is 0.4 pct lower than that of 21H1. The contribution of hospital profits in the first half of 2022 totaled 364 million yuan, an increase of 1.6 percent over the first half of 2021 compared with the same period last year.
According to the materials of the performance meeting, the profit contribution of self-owned hospitals accounted for 78.5%.
Profit forecast and investment rating. It is estimated that the net profit of homing in 22-23 years will be 445 and 482 million yuan, and the latest stock price will be 11.8 and 10.9 times of PE. China Resources Medical has rich experience in hospital management, comprehensive integration with parent company China Resources Health, strengthening resource coordination, integrating member units, and two-wheel drive growth through continuous mergers and acquisitions + improving the operating efficiency of existing hospitals. With reference to the valuation of comparable companies and taking into account the current illiquidity of Hong Kong stocks, it is given 15 times PE for 22 years, corresponding to a reasonable value of HK $5.91 per share. Maintain a "buy" rating.
Risk hint. The epidemic has an adverse impact on offline hospitals; the process of network expansion of group hospitals is not as expected; the integration or operation of mergers and acquisitions of hospitals is not as expected.